Startup Professionals Musings

MARCH 14, 2020

After many years of working with angel investors seriously trying to find new ventures worthy of their hard-earned money, I find their frustration often exceeds that of entrepreneurs sincerely looking for financial help. Investors invest in people, often more so than in the product. Surprises during due diligence.

Due Diligence 308

Due Diligence Intellectual Property Preferred Stock Seed Stage 308

Startup Professionals Musings

NOVEMBER 4, 2011

Every new startup I know dreams of being funded by an angel investor. are eliminated during due diligence. Over the past 10 years, I have had the opportunity to see how the process works, several times from the startup side, and more recently from the angel perspective (as a member of an angel group selection committee).

Intellectual Property 249

Intellectual Property Angel Investor Technical Review Elevator Pitch 249

Startup Professionals Musings

SEPTEMBER 23, 2010

Every new startup I know dreams of being funded by an angel investor. are eliminated during due diligence. Over the past 10 years, I have had the opportunity to see how the process works, several times from the startup side, and more recently from the angel perspective (as a member of an angel group selection committee).

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

Startup Professionals Musings

APRIL 22, 2012

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. In fact, most angels are pure, but there are some exceptions that may cost you more than an investment: Shark angels.

Angel Investor 281

Angel Investor Term Sheet Entrepreneur Due Diligence 281

Up and Running

JULY 2, 2014

We developed a kick-ass investor pitch and we started pitching it to family, friends, angel investors, and even venture capitalists for feedback. We soon got interest from an angel investor, and he wanted to invest $300,000 in our startup. We gladly handed it over to him as part of the due diligence process.

Technical Review 118

Technical Review Angel Investor Due Diligence Dilution 118

Startup Professionals Musings

AUGUST 6, 2023

Now there are dozens of online equity portals, including WeFunder and Microventures , already geared up to help regular people buy equity in a startup, without qualifying as an accredited investor. Have you ever wondered what professional startup investors think about all this? Lack of checks and balances on startup valuations.

Angel Groups 201

Angel Groups Accredited Investor Due Diligence Equity 201

Startup Professionals Musings

NOVEMBER 25, 2020

Now there are dozens of online equity portals, including WeFunder and Microventures , already geared up to help regular people buy equity in a startup, without qualifying as an accredited investor. Have you ever wondered what professional startup investors think about all this? Lack of checks and balances on startup valuations.

Equity 411

Equity Angel Groups Accredited Investor Due Diligence 411

Up and Running

MARCH 14, 2018

I know what it’s like to pitch to investors—both angels and venture capitalists. I’ve raised close to $1 million from angel investors for my previous technology startups. Sometimes you only get 10 minutes to pitch your business opportunity to the investors (or less in some cases). How much will it cost?

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Angel Investor 164

Startup Professionals Musings

SEPTEMBER 14, 2022

There just aren’t enough angel investors and VCs to go around. A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock.

Merger 261

Merger OTC IPO Due Diligence 261

Startup Professionals Musings

JULY 9, 2021

Most new entrepreneurs tend to avoid the financials of the business, and as a result are badly surprised by cost realities, and can’t answer investor questions. I suggest a simple Excel spread sheet loaded with your revenue, cost, and margin targets covering the first five years of your business.

Elevator Pitch 390

Elevator Pitch Entrepreneur Due Diligence Angel Investor 390

Startup Professionals Musings

MAY 26, 2013

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. In fact, most angels are pure, but there are some exceptions that may cost you more than an investment: Shark angels.

Angel Investor 263

Angel Investor Term Sheet Due Diligence Early Stage 263

Startup Professionals Musings

JUNE 14, 2020

As an advisor to entrepreneurs and active angel investor, I often get questions about the realism of the Shark Tank TV series, compared to professional investor negotiations. The simple answer is that with all the staging of TV lights and billionaire investors, it’s nothing like Silicon Valley.

Due Diligence 317

Due Diligence Angel Investor Silicon Valley Green 317

Startup Professionals Musings

MAY 27, 2016

There is an old saying in the startup investor community, “Smart investors invest in the team, not the idea.” As an angel investor, I’ve learned to believe in this approach, since I have seen great ideas go astray, due to poor execution and I have seen apparently marginal ideas make millions, managed by a savvy entrepreneur.

Technical Review 134

Technical Review Intellectual Property Due Diligence Angel Investor 134

The Equity Kicker

SEPTEMBER 24, 2014

These two developments combine to make startup investing much more exciting than it ever used to be and we have seen a massive increase in the number of individuals who want to be angel investors. That makes it possible for investors to cost-effectively invest small amounts and make lots of small bets on different startups.

Early Stage 119

Early Stage Development Team Review Technical Review Software Review 119

Up and Running

NOVEMBER 26, 2018

Startups have to deal with starting costs and ongoing businesses have to finance growth and working capital. Investors will look first to a summary , and then a pitch ; but if you get through that screening, they’ll want to see a business plan for the process of due diligence. These are shark-infested waters.

SBA 161

SBA Venture Capital Angel Investor Technical Review 161

This is going to be BIG.

NOVEMBER 22, 2013

Angel investor Jeff Stewart once told me that either the product takes twice as long and costs three times as much to build as your plan, or takes three times as long to build and costs twice as much--you just don''t know which one. Running a startup is going to be difficult. My fundraise was relatively easy.

Technical Review 118

Technical Review Due Diligence Angel Investor Venture Capital 118

Startup Professionals Musings

DECEMBER 8, 2019

There just aren’t enough angel investors and VCs to go around. A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock.

Merger 303

Merger OTC IPO Due Diligence 303

Startup Professionals Musings

DECEMBER 3, 2010

A few angel investors have slipped or fallen from their lofty perch, so entrepreneurs must take great care to validate the character and reputation of every prospective investor. In fact, most angels are pure, but there are some exceptions that may cost you more than an investment: Shark angels.

Angel Investor 244

Angel Investor Term Sheet Due Diligence Early Stage 244

Up and Running

MAY 10, 2013

Yesterday’s Willamette Angel Conference (WAC) 2013 event invested more than $465,000 in four Oregon startups, highlighted by more than $250,000 in Portland-based Sonivate , which has developed a fingertip-mounted ultrasound probe that enables imaging while leaving both hands free to do work with simultaneous tactile feedback. .

Software Review 69

Software Review Oregon Portland Technical Review 69

ReadWriteStart

JUNE 1, 2020

It is going to cost a lot of money just to get the initial batch of products to test the market and would definitely require external funding. Equity investors. The third source of funding is from equity investors. For these businesses, it is imperative to get funding from the start without which the company cannot be set up.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

YoungUpstarts

DECEMBER 10, 2015

Businesses will have the option to acquire extra cash capital from banks and financial institutions, angel investors, government funding, business bursaries or even venture capitalists (should their investment requirements exceed $5 million). The costs associated with hiring the wrong person can greatly outweigh what you pay them!

Due Diligence 100

Due Diligence Startup Angel Investor Hiring 100

Both Sides of the Table

SEPTEMBER 25, 2010

Investors who commit early deserve to have a lower price. I argued it in my post on how social proof helps fund raising with angel investors. “what you really need to get an angel round together are your “anchor tenants.” But that’s what great angels do. &# rings true to me. and not a min.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Up and Running

MARCH 21, 2012

BTW, a vocabulary note: in entrepreneurship we refer to “ due diligence ” as the process of checking out a proposal for flaws, the equivalent of kicking tires, making sure what’s said is actually true. It’s not just for angel investors and venture capitalists. Never skip the due diligence.

Due Diligence 67

Due Diligence Angel Investor Operations Email 67

Startup Professionals Musings

AUGUST 3, 2015

Others spend money on mailing lists and investor contacts and “cold calling” a few thousand people, hoping to find someone willing to take a risk on an unknown company. As an angel investor, I believe this approach is a waste of time, since no honest investor is likely to seriously consider a request for money from a stranger.

Cost 120

Cost Angel Groups Due Diligence Silicon Valley 120

Up and Running

APRIL 11, 2012

This fits beautifully with my thinking that the plan is what’s going to happen, when and why, and how much it costs and brings in; and all these variations are just the output. And I like his summary: Imagine a fishing analogy: The elevator and video pitches are lures – used to attract investors.

Business Plan 85

Business Plan Elevator Pitch Technical Review Due Diligence 85

Both Sides of the Table

JULY 25, 2010

“Yes&# was given to me by one of my favorite angel investor / seed VC’s to work with – John Greathouse of Rincon Venture Partners and author of the blog InfoChachkie that you should check out because it is filled with great info from a guy who has been a very successful operator.

Silicon Valley 293

Silicon Valley Technical Review Southern California Angel Investor 293

Both Sides of the Table

NOVEMBER 14, 2010

The dinner parties now are filled with self-righteous angel investors bragging about how many deals they are in on. The best angels will do very well just at the best real estate investors did well in good times and bad. in 2009 the market was completely constipated as investors focused on triage.

Florida 299

Florida Technical Review San Antonio Los Angeles 299

The Next Web

MAY 4, 2013

He is a part-time hacker, angel investor, and product advisor, and was selected from more than 300 people to “shadow” Dave McClure at 500 Startups. Coming to San Francisco to network, meet interesting people, get advice on your company is a great learning opportunity and the cost is well worth it. Reference Checks.

San Francisco 159

San Francisco Europe Technical Review Due Diligence 159

Both Sides of the Table

APRIL 20, 2011

They chose the name First Round Capital because they thought capital would be deployed most efficiently at smaller seed stage rounds considering the cost to build an internet business had come down drastically. 100 get serious due diligence where the entrepreneur meets with several people from the firm. Investing Strategy.

Pre-Money Valuation 284

Pre-Money Valuation Technical Review Cofounder Cram Down 284

Up and Running

JANUARY 2, 2013

I know what it’s like to pitch to investors – both angels and venture capitalists. I’ve raised close to $1 million from angel investors for my previous technology start-ups. Sometimes you only get 10 minutes to pitch your business opportunity to the investors (or less in some cases).

Hockey Stick 164

Hockey Stick Exit Strategy Technical Review Due Diligence 164

Up and Running

MAY 12, 2015

Tim advises asking potential investors to sit in on a “pre pitch” before the formal pitch session, a strategy that worked well for Dune Sciences, which won the 2014 Willamette Angel Conference investment. Ask an angel investor: Targeting a particular angel investor can be a good tactic, as they are often willing to evaluate your pitch.

Angel Investor 60

Angel Investor Software Review Technical Cofounder Due Diligence 60

Startup Professionals Musings

JANUARY 13, 2018

There just aren’t enough angel investors and VCs to go around. A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock.

Merger 198

Merger OTC IPO Due Diligence 198

Up and Running

AUGUST 19, 2014

Got a question for one of the angel investors mentioned below? Today is Ask an Angel day! Tips from real angel investors about how to impress them and stand out from the crowd. Many angels are entrepreneurs themselves, or executives and business or community leaders. How Angels Invest. 51 percent).

Angel Investor 161

Angel Investor Technical Review Due Diligence Startup 161

Startup Professionals Musings

AUGUST 1, 2016

After many years of working with angel investors seriously trying to find new ventures worthy of their hard-earned money, I find their frustration often exceeds that of entrepreneurs sincerely looking for financial help. Investors invest in people, often more so than in the product. Surprises during due diligence.

Due Diligence 120

Due Diligence Intellectual Property Preferred Stock Seed Stage 120

Startup Professionals Musings

FEBRUARY 15, 2012

If you are new to the startup space and Angel investing, you probably don’t realize that some groups of Angel investors charge entrepreneurs a fee to pitch to their groups. In reality, these fees are usually trivial compared to your real costs of preparing, travelling, and presenting to investors.

Angel Groups 237

Angel Groups Angel Investor Due Diligence Seed Stage 237

The Startup Magazine

JUNE 2, 2021

However, entrepreneurs still have to do their due diligence to ensure the approach they take bears fruit. Avoid ambiguity at all costs. Although the majority of these ways are simple, they still require a lot of due diligence. Raising funds for your business is a matter of creativity. Personal savings.

Due Diligence 125

Due Diligence Startup Finance Early Stage 125

Startup Professionals Musings

MAY 3, 2014

There just aren’t enough Angel investors and VCs to go around. A reverse merger is the acquisition of an already public company (usually a dormant shell) to avoid the Initial Public Offering (IPO) process and cost, to quickly get your startup on a public exchange for fund raising through visibility and selling stock.

Merger 246

Merger OTC IPO Stock 246